Consider a pool of mortgages, originated three years ago. Prepayment on this pool of mortgages ran at

Fantastic news! We've Found the answer you've been seeking!

Question:

Consider a pool of mortgages, originated three years ago. Prepayment on this pool of mortgages ran at SMM = 0.5% over the first 12 months, and then SMM = 1.5% over months 13-36.

What is the survival factor for this pool?

Related Book For answer-question

Real Estate Finance and Investments

ISBN: 978-0073377339

14th edition

Authors: William Brueggeman, Jeffrey Fisher

See More Books

Posted Date: Oct 26, 2023 12:38 AM

See More Questions

Regarding conditional prepayment rates (CPRs) and single monthly mortality (SMM) rates, which of the following is most accurate? a. SMM is computed from the CPR to compute monthly prepayments. b. SMM...
Mr. Blanda tells Mr. Houston to recalculate the SMM for Pool 3 based on 200 PSA rather than the current 100 PSA. The revised SMM is closest toa. 0.36 percentb. 0.55 percentc. 0.97 percent Mark...
At the end of the current year, X Ltd. had an RDTOH balance of $18,000 ($4,000 eligible and $14,000 non-eligible). During the year, X paid taxable dividends of $40,000 of which $20,000 were...
You require inventory and accounts receivable collateral for all C&I loans. You have a guideline of an advance rate of 70% for customer receivables of less than 60 days of age. Older receivables get...
In what ways does Costco meet the criteria for a "sustainable" organization?
What is the difference between cumulative and noncumulative preferred shares? Can dividends in arrears arise for both types of preferred shares? Explain.
Sampras Sporting Goods Company manufactures two types of tennis rackets, the Junior and Pro-Striker models. The production budget for November for the two rackets is as follows: Junior Pro-Striker...
Kristi had a business building destroyed in an earthquake. The old building was purchased for $250,000 and $80,000 of depreciation deductions had been taken. Her insurance proceeds were $550,000....
Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31 follow. Assume that the company's income tax rate is 30% for all items. a....
In the Reddy Mikks model of Example 2.2-1; (a) Determine the range for the ratio of the unit revenue of exterior paint to the unit revenue of interior paint. (b) If the revenue per ton of exterior...
Fig. 1 shows the core of a simple DC motor. The magnetization curve for the metal in this core is given by Fig.2(a) and (b) Assume that the cross-sectional area of each air gap is 18 cm2 and that the...
A bond is currently quoted at 103.7 (103.7% of par). The bond gives semiannual coupon payments of $37.75 each and matures in 9 years. Calculate the coupon rate on these bonds.
Dunder Mifflin provides valuable and rare services that are difficult to imitate. Unfortunately, the company is not organized in a way to build an advantage off these resources. Thus, they have this...
Bella Windows Co. is a window manufacturer located in eastern Pennsylvania with roughly 150 employees in its facility. The Smith family founded it in 1994 because their children, who were architects,...
A traveling wave obeys D ( x , t ) = ( 3 . 0 cm ) sin ( ( 0 . 2 5 rad / m ) x - ( 7 0 0 rad / s ) t + \ pi ) a . Determine the wavelength. b . Determine the frequency. c . Determine the angular...
In regards to his article, what would be a good way to respond these topics?: Marvasti, A. (2000, February). Motion pictures industry: Economies of scale and trade . International Journal of the...
For the circuit shown in the figure, calculate the following. (Assume = 8.04 V and R = 6.42 2.) 12.0 V + 4.00 W 2.00 b ww W + R (a) the current in the 2.00- resistor (Enter the magnitude.) 3.33 Your...
A firm has the following balance sheet: Assets Cash Accounts receivable Inventory Plant and equipment $ 15,000 150,000 92,000 170,000 $427,000 Liabilities and Equity Accounts payable Long-term debt...
How must one discount a series of uneven receipts to find PV?
What is the marginal rate of return? How is it calculated?
An investor is considering the acquisition of a distressed property which is on Northlake Banks REO list. The property is available for $200,000 and the investor estimates that he can borrow $160,000...
If $\kappa_{1}$ and $\kappa_{2}$ are kernels on $\mathscr{X}$ and $\mathscr{Y}$, then \(\kappa_{+},\left((\boldsymbol{x}, \boldsymbol{y}),\left(\boldsymbol{x}^{\prime},...
Let $\mathbf{X}$ be an $\mathbb{R}^{d}$-valued random variable that is symmetric about the origin (that is, $\boldsymbol{X}$ and $(-\boldsymbol{X})$ are identically distributed). Denote by...
Suppose an $\mathrm{RKHS} \mathscr{G}$ of functions from $\mathscr{X} ightarrow \mathbb{R}$ (with kernel $\kappa$ ) is invariant under a group $\mathscr{T}$ of transformations \(T:...

Consider a pool of mortgages, originated three years ago. Prepayment on this pool of mortgages ran at

Question:

Expert Answer:

The survival factor for a pool of mortgages is the ... View the full answer

Real Estate Finance and Investments

Students also viewed these finance questions